The Association of British Insurers said an agreement with the British government will ensure flood insurance will remain widely available throughout the region struck by flooding.

The agreement comes one year after the floods that devastated much of Gloucestershire and the Midlands in Britain.

The ABI said the government agreed to a commitment to deliver a long-term flood strategy and tighter controls on new developments.

The agreement comes after an ABI-commissioned survey among last summer's flood victims in the region showed that:

o Eight out of ten think the flood risk is getting worse.

o Three-quarters think not enough is being done to tackle the flood threat.

o Nine out of ten people say that new homes should not be built in flood risk areas unless there are adequate flood defenses.

The survey was a random sampling of 1,000 adults affected by the flood.

"Last summer's floods highlighted the urgent need for an overhaul in managing the flood risk," Nick Starling, ABI's director of general insurance and health, said in a statement.

"Insurers dealt with over 180,000 claims, and paid out ?3 billion (U.S. $6 billion). The government is now committed to a long-term flood strategy that will lead to a better understanding of the flood risk, with investment to manage it effectively. This will ensure that flood insurance, relied upon by thousands of homeowners and businesses in the region, remains widely available," he concluded.

Special Reports /

ABI Says Government Agreement Ensures Flood Insurance

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